tiprankstipranks
Trending News
More News >
Sun Communities, Inc. (SUI)
:SUI
Advertisement

Sun Communities (SUI) AI Stock Analysis

Compare
523 Followers

Top Page

SUI

Sun Communities

(NYSE:SUI)

Rating:70Neutral
Price Target:
$136.00
▲(7.23% Upside)
Sun Communities demonstrates a solid financial foundation with strong cash flow and valuation metrics. The strategic realignment and positive earnings call sentiment boost confidence, although high leverage and low net profit margins are areas of concern.
Positive Factors
Debt Management
The sale of the Marina business will significantly reduce leverage and strengthen the company's emphasis on high-value segments.
Financial Performance
SUI posted a stronger performance in the manufactured housing sector with improved occupancy rates, reaching 99% across its MH and RV portfolios.
Leadership
SUI announced the highly-anticipated appointment of a new CEO, Charles Young, a solid and potentially outstanding choice given his leadership experience at a leading S&P 500 residential REIT.
Negative Factors
Cost Management
Despite implementing a cost-cutting plan, the company's G&A expenses as a percentage of revenues remain higher than those of its peer group.
Growth Expectations
Expectations for same-store RV net operating income for the remainder of the year were lowered due to slower transient reservation pacing and less visibility with shorter booking windows.
Revenue Decline
North America SS Transient RV revenue declined -20.1% due to fewer transient sites.

Sun Communities (SUI) vs. SPDR S&P 500 ETF (SPY)

Sun Communities Business Overview & Revenue Model

Company DescriptionSun Communities, Inc. (SUI) is a real estate investment trust (REIT) that owns, operates, and develops manufactured housing and recreational vehicle (RV) communities. Based in the United States, the company provides long-term and short-term housing solutions through its portfolio of properties across North America, focusing on offering affordable and high-quality living environments. Sun Communities' properties are designed to cater to a wide range of lifestyles, from family-oriented communities to active adult and retirement living options.
How the Company Makes MoneySun Communities makes money primarily through rental income from its portfolio of manufactured housing and RV communities. The company leases land parcels to residents who own manufactured homes and charges rent for the land, which includes access to communal amenities and maintenance services. Additionally, Sun Communities generates revenue from RV site rentals, where travelers and vacationers pay for short-term stays at its RV resorts. The company may also earn income from selling and financing manufactured homes within its communities. Significant factors contributing to its earnings include a growing demand for affordable housing, strategic acquisitions of new properties, and the development of new communities to expand its portfolio.

Sun Communities Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: 8.77%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment overall, driven by significant debt reduction, strong financial performance, strategic reallocations, and leadership transitions. Despite some challenges in the RV segment and strategic impairments, the company has demonstrated resilience and growth, supported by credit rating upgrades and strategic acquisitions.
Q2-2025 Updates
Positive Updates
Debt Reduction and Shareholder Returns
Sun Communities paid down approximately $3.3 billion of debt, improving its balance sheet, and returned over $830 million to shareholders through a special cash distribution and share repurchases.
Core FFO and NOI Growth
Sun reported core FFO per share of $1.76, exceeding the high end of guidance. Total North American same-property NOI grew 4.9% in the second quarter, with manufactured housing NOI up 7.7% and U.K. portfolio NOI up 10.2%.
Leadership Transition
Charles Young was appointed as the next CEO, bringing over 25 years of experience in real estate, including as President of Invitation Homes.
Credit Rating Upgrades
Sun Communities received credit rating upgrades from S&P Global to BBB+ and Moody’s to Baa2, citing deleveraging progress and balance sheet strength.
U.K. Ground Lease Acquisition
Sun acquired titles to 22 properties in the U.K. previously controlled via ground leases for approximately $199 million, eliminating material lease obligations and creating strategic flexibility.
Negative Updates
RV Segment Challenges
Same-property RV NOI declined 1.1%, with a 0.9% revenue increase offset by a 3.1% increase in expenses. RV same-property guidance is maintained at down 1.5% at the midpoint for 2025.
Strategic Shift and Impairments
Sun recorded impairment charges due to a strategic shift away from developing new greenfield projects in both the U.K. and the U.S.
Company Guidance
During Sun Communities' second quarter 2025 earnings call, the company provided robust guidance and highlighted significant financial achievements. Sun Communities completed the sale of Safe Harbor Marinas, realigning itself as a pure-play owner and operator of manufactured housing and RV communities. The company paid down approximately $3.3 billion of debt, enhancing its balance sheet and returned over $830 million to shareholders through a special cash distribution and share repurchases. The regular annual distribution rate was increased by over 10%. Sun reported core funds from operations (FFO) per share of $1.76, exceeding the high end of guidance, and North American same-property net operating income (NOI) grew by 4.9%. Manufactured housing NOI saw a 7.7% increase, with occupancy rising to 97.6%. In the UK, same-property NOI increased by 10.2%. The full-year guidance for FFO per share was raised to a range of $6.51 to $6.67, an increase of over 90 basis points at the midpoint, driven by strong performance in the manufactured housing and UK segments. The company also received credit rating upgrades, with S&P Global and Moody’s citing deleveraging progress and balance sheet strength as key factors.

Sun Communities Financial Statement Overview

Summary
Sun Communities presents a generally healthy financial position with strong operational and cash flow metrics. While revenue growth and profitability margins are favorable, high leverage is a concern, potentially impacting financial flexibility. The stability in cash flow generation supports operations, but the low net profit margin and return on equity are areas for improvement to enhance shareholder value.
Income Statement
68
Positive
Sun Communities shows steady revenue growth with a TTM revenue of $2.99 billion, although there has been a slight decline from the previous year. The gross profit margin remains strong at 47.7% in the TTM period. However, the net profit margin is relatively low at 2.56%, indicating challenges in converting revenue into net income. Both EBIT and EBITDA margins show solid profitability at 17.26% and 35.2%, respectively, providing a stable operational performance.
Balance Sheet
62
Positive
The company's balance sheet reflects a high debt-to-equity ratio of 1.06, suggesting significant leverage, which could pose financial risk. Return on equity is modest at 1.11%, indicating limited profit generation from shareholders' equity. However, the equity ratio stands at 41.93%, showing a reasonable proportion of equity financing compared to total assets, which adds some stability.
Cash Flow
74
Positive
Operating cash flow is robust at $862.4 million, contributing positively to a strong free cash flow. The operating cash flow to net income ratio stands at 11.24, highlighting a strong cash-generating ability relative to net income. The free cash flow to net income ratio is also robust, demonstrating effective cash management, although there has been minimal growth in free cash flow compared to previous periods.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.77B3.20B3.18B2.93B2.26B1.39B
Gross Profit1.70B1.50B1.49B1.42B1.15B774.22M
EBITDA2.03B1.21B771.60M2.27B1.68B1.26B
Net Income1.30B89.00M-213.30M242.00M380.20M131.61M
Balance Sheet
Total Assets13.36B16.55B16.94B17.08B13.49B11.21B
Cash, Cash Equivalents and Short-Term Investments15.63B47.40M29.20M200.10M252.70M202.07M
Total Debt0.007.35B7.78B7.13B5.60B4.69B
Total Liabilities5.57B9.36B9.77B9.20B6.76B5.58B
Stockholders Equity7.41B7.08B7.08B7.81B6.62B5.53B
Cash Flow
Free Cash Flow551.10M861.00M790.50M734.90M753.60M543.29M
Operating Cash Flow551.10M861.00M790.50M734.90M753.60M543.29M
Investing Cash Flow25.10M-267.40M-919.50M-3.06B-2.34B-2.49B
Financing Cash Flow-570.20M-571.60M80.30M2.35B1.57B2.00B

Sun Communities Technical Analysis

Technical Analysis Sentiment
Positive
Last Price126.83
Price Trends
50DMA
124.21
Positive
100DMA
122.33
Positive
200DMA
121.65
Positive
Market Momentum
MACD
-0.32
Negative
RSI
56.93
Neutral
STOCH
86.11
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUI, the sentiment is Positive. The current price of 126.83 is above the 20-day moving average (MA) of 123.74, above the 50-day MA of 124.21, and above the 200-day MA of 121.65, indicating a bullish trend. The MACD of -0.32 indicates Negative momentum. The RSI at 56.93 is Neutral, neither overbought nor oversold. The STOCH value of 86.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SUI.

Sun Communities Risk Analysis

Sun Communities disclosed 41 risk factors in its most recent earnings report. Sun Communities reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Sun Communities Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$12.59B33.5823.16%3.29%-0.03%1.00%
70
Neutral
$15.87B12.39-1.51%6.32%-14.17%1097.53%
70
Neutral
$12.77B99.033.74%4.44%2.29%-4.89%
68
Neutral
$17.16B20.6914.40%3.91%7.56%54.15%
66
Neutral
€5.13B19.001082.11%5.38%1.41%99.06%
66
Neutral
$15.24B73.813.30%3.89%0.56%-73.40%
63
Neutral
$1.40B147.353.45%5.36%8.01%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SUI
Sun Communities
126.83
5.79
4.78%
ELS
Equity Lifestyle
62.05
-6.56
-9.56%
UMH
Umh
16.64
-1.48
-8.17%
ESS
Essex Property
257.36
-10.68
-3.98%
UDR
UDR
38.55
-0.94
-2.38%
CPT
Camden Property
107.67
-6.18
-5.43%

Sun Communities Corporate Events

Executive/Board Changes
Sun Communities Appoints New CEO Charles D. Young
Neutral
Jul 23, 2025

On July 23, 2025, Sun Communities, Inc. announced the appointment of Charles D. Young as Chief Executive Officer, effective October 1, 2025, succeeding Gary A. Shiffman, who will transition to Non-Executive Chairman of the Board. Mr. Young brings over 25 years of experience in real estate operations and investment management, having previously served as President of Invitation Homes Inc. Under Mr. Shiffman’s leadership, Sun Communities grew significantly, achieving a market capitalization of over $16.5 billion and expanding its portfolio to over 500 communities. The transition marks a new chapter for the company, with expectations of continued growth and value delivery for shareholders and stakeholders.

The most recent analyst rating on (SUI) stock is a Buy with a $147.00 price target. To see the full list of analyst forecasts on Sun Communities stock, see the SUI Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Sun Communities Highlights Strategic Focus on MH and RV
Positive
Jun 2, 2025

On June 2, 2025, Sun Communities, Inc. released an investor presentation highlighting its strategic focus on MH and RV communities, following the sale of its Safe Harbor Marina properties. This move aims to simplify the company’s business strategy, improve its financial profile, and increase its exposure to annual income streams. The company anticipates that this transaction will enhance margins, improve overhead efficiency, and strengthen its balance sheet, positioning it as a ‘pure play’ MH and RV operator.

The most recent analyst rating on (SUI) stock is a Buy with a $147.00 price target. To see the full list of analyst forecasts on Sun Communities stock, see the SUI Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Sun Communities Holds Annual Shareholders Meeting
Neutral
May 15, 2025

Sun Communities held its Annual Meeting of Shareholders on May 13, 2025, where shareholders voted on several key proposals. The election of nine directors was confirmed, with each director set to serve until the 2026 Annual Meeting. Additionally, shareholders approved the non-binding advisory vote on executive compensation, ratified the selection of Grant Thornton LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and approved an amendment to extend the term of the company’s 2015 Equity Incentive Plan to December 31, 2035.

The most recent analyst rating on (SUI) stock is a Buy with a $147.00 price target. To see the full list of analyst forecasts on Sun Communities stock, see the SUI Stock Forecast page.

M&A TransactionsStock BuybackDividendsBusiness Operations and Strategy
Sun Communities Sells Safe Harbor Marinas to Blackstone
Positive
May 6, 2025

On April 30, 2025, Sun Communities, Inc. completed the initial closing of the sale of its Safe Harbor Marinas business to an affiliate of Blackstone Infrastructure for approximately $5.25 billion. This transaction aligns with Sun’s strategy to focus on its core MH and RV portfolio, enhancing its financial flexibility and leverage profile. The proceeds will be used to repay debt, fund future acquisitions, and return capital to shareholders through a special cash distribution and a stock repurchase program. The company also announced plans to redeem $950 million of outstanding unsecured senior notes and declared a special one-time cash distribution of $4.00 per share.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 01, 2025